The stock price of Misr Fertilizer Production Company (MOPCO) increased 1.5x to about EGP 248 over eight trading sessions, before it declined in two consecutive sessions at the end of last week.
The company’s profitability multiplier increased from 3.9 times at the beginning of this month to 11.8 times at the end of last Thursday’s trading, and the stock closed at EGP 227.17, down 3%, with a turnover of EGP 81.5m.
According to research centres, the currency exchange differences will represent a primary support for the company’s profitability during the coming period, and the increase in revenues in general will remain the largest supporter of the financial performance of MOPCO.
According to Mubasher Trade, MOPCO’s interest revenue increased to support the profitability of the first quarter of this year, as it increased by more than 4 times to reach EGP 270.3m, driven by the increase in interest rates on deposits and treasury bills.
According to Prime Securities, the fair value of the company’s stock is around EGP 220, with a neutral recommendation and medium risk.
Prime’s report added that the company reaped about EGP 1.1bn from currency differences during the first quarter of this year.
The consolidated profits of MOPCO increased on an annual basis, during the first quarter of this year, by about 17%, and recorded about EGP 2.4bn, which reflects a net profit margin of 48.2%.
Net financing income increased by 10 times compared to last year, reaching EGP 264m.